Building next gen fund data tools | Founder @ AM Insights | Podcast Host | Chair @ Aurora
Neil Woodford still refusing to own it 🙄 His interview with City AM was enlightening And not in the way he’d hoped… Once again, he points the finger everywhere but the mirror I have no doubt the ACD played a huge part in the collapse But to suggest they were the only ones at fault? Utter nonsense Fund managers must be all over their liquidity While the ACD is there for checks and balances Woodford’s blame-shifting and lack of accountability is ironic.. It highlights the very hubris that led to his downfall This article is an insult to his investors The collapse was seismic - not only decimating retail investors’ wealth but also their confidence in our industry Kudos to Elliot Gulliver-Needham for securing the interview I'll finish with an illustration of the narcissism at play here: “Apparently, I am now the only person who should have known that it was deficient. Nobody in the FCA, nobody in Link, nobody in the depository, nobody in Woodford Investment Management’s risk and compliance department,” #woodford #hubris #assetmanagement ___________ Follow me, tap the bell 🔔 on my profile Lucy Walker You will be notified when I post. ___________
Phil Milburn
2w
I cannot agree more strongly. The first person responsible for a fund’s liquidity profile is the fund manager themselves. I read the article and just thought what a narcissistic sociopath. (Note I do not know him personally, my agenda is purely the damage he has done to the reputation of the industry)
At the launch of the fund, several prominent tabloids wrote positively about his large exposure to unquoted stock. In fact, that was a key selling point to many advisors at the time. So the industry awareness was there. Anyone who did an ounce of due diligence on the fund would have seen the liquidity mismatch at the off.
I am reading the Chimp Paradox at the moment, an iconic book around self development. The author refers to people with psychopathic tendencies. This doesn't necessarily mean they are axe murderers or in horror movies. But they can be hard-wired and inflexible. In fact the definition below seems to set out some of Woodford's character flaws quite nicely: (sorry Neil!) 🫣 Psychopathy, or psychopathic personality, is a personality construct characterized by impaired empathy and remorse, in combination with traits of boldness, disinhibition, and egocentrism. These traits are often masked by superficial charm and immunity to stress, which create an outward appearance of feigned normalcy.
Same old mantra. -> Deny, deflect, dismiss. Never apologise, never explain.
Now that interview with Neil Woodford makes me really want to follow his new blog… 🤮 (+++Opinions are my own. Not investment advice. Do your own research.+++)
Ahh Lucy Walker, perhaps if he had been using AM Insights he may have had a better understanding of his risk positions?!
Taking all the credit for the previous success but shifting the blame for the failure tells you all you need to know. Loving the fund selectors podcast Lucy
Lucy Walker there are many ‘stars’ that think this way. Sadly, it’s often what gets them to the top in the first place. It’s his name on the door. Own it. 👊
Former Head of Portfolio Management at Investec Wealth & Investment
2wI am not going to defend him because it is obvious that he lacks the humility to understand his role in what was/is a sorry tale for the industry. However, I do agree with his sentiment that the ACD has an important role here in the way they assessed his liquidity profile and the speed at which they decided to close the fund. My read on the situation (this is just a hypothesis) was that Link were probably star struck by Mr Woodford and his 'reputation' and therefore overlooked or underestimated the controls being applied and ultimately signed off on. When they realised it was inadequate to protect unit holders, they probably over-acted to compensate.